Labor Arbiters and NLRC

Question 1

What is the Jurisdiction of the Labor Arbiters and the Commission?

Answer 1

The Labor Arbiters shall have original and exclusive jurisdiction to hear and decide, within thirty (30) calendar days after the submission of the case by the parties for decision without extension, even in the absence of stenographic notes, the following cases involving all workers, whether agricultural or non-agricultural:

1. Unfair labor practice cases;
2. Termination disputes;
3. If accompanied with a claim for reinstatement, those cases that workers may file involving wages, rates of pay, hours of work and other terms and conditions of employment;
4. Claims for actual, moral, exemplary and other forms of damages arising from the employer-employee relations;
5. Cases arising from any violation of Article 264 of this Code, including questions involving the legality of strikes and lockouts; and
6. Except claims for Employees’ Compensation, Social Security, Medicare and maternity benefits, all other claims arising from employer-employee relations, including those of persons in domestic or household service, involving an amount exceeding five thousand pesos (P5,000.00) regardless of whether accompanied with a claim for reinstatement.

Question 2

Does every controversy or money claim by an employee against the employer or vice-versa within the exclusive jurisdiction of the Labor Arbiter?

Answer 2

No. Not every controversy or money claim by an employee against the employer or vice-versa is within the exclusive jurisdiction of the labor arbiter. Actions between employees and employer where the employee-employer relationship is merely incidental and the cause of action precedes from a different source of obligation is within the exclusive jurisdiction of the regular courts. (Halaguena vs. PAL, G.R. No. 172013, October 2, 2009)

Question 3

What are the additional cases cognizable by the Labor Arbiters and the Commission?

Answer 3

Yes. The following should be added:

1) Money claims arising out of employer-employee relationship by virtue of any law or contract, involving Filipino workers for overseas deployment, including claims for actual, moral, exemplary and other forms of damages, as well as employment termination of OFWs;
2) Wage distortion disputes in unorganized establishments not voluntarily settled by the parties pursuant to RA 6727 as reflected in Article 124;
3) Enforcement of compromise agreements when there is non-compliance by any of the parties pursuant to Article 233 of the Labor Code, as amended; and
4) Other cases as may be provided by law.

Question 4

What are the differences between a Labor Arbiter and a Regional Director in terms of Jurisdiction?

Answer 4

1. As to Jurisdiction over money claims – Labor Arbiters have no jurisdiction over small money claims lodged under Article 129, except when the claim includes a prayer for reinstatement. (LABOR CODE, Art. 224). The total amount of money claims must involve an amount exceeding P5,000 (LABOR CODE, Art. 224). On the other hand, DOLE Regional Directors have jurisdiction over claims amounting to P5,000 or below, provided the following requisites concur: (1) the claim must arise from employer-employee relationship; (2) the claimant does not seek reinstatement; and (3) the aggregate money claim of each employee does not exceed P5,000.00 (LABOR CODE, Art. 129)
2. As to jurisdiction over inspection of establishment – Labor Arbiters have no jurisdiction. DOLE Regional Directors have jurisdiction in cases of inspection of establishment, regardless whether or not the total amount of claims per employee exceeds P5,000. For the valid exercise by the DOLE Secretary or any of his duly authorized representaitves (DOLE Regional Directors of the visitorial and enforcement powers provided under Article 128 (b), the following requisites should concur:
   a) The employer-employee relationship should still exist;
   b) The findings in question were made in the course of inspection by labor inspectors; and
   c) The employees have not yet initiated any claim or complaint with the DOLE Regional Director under Article 129 or the Labor Arbiter under Article 224. (People’s Broadcasting Service vs. Secretary of DOLE, G.R. No. 179652, March 6, 2012)

Question 5

Does the NLRC have jurisdiction to award money claims to employees of LRTA, a government owned or controlled corporation?

Answer 5

The NLRC acquired jurisdiction over LRTA not because of the employer-employee relationship of the respondents and LRTA (because there is none) but rather because LRTA expressly assumed the monetary obligations of Metro to its employees. In the Agreement, LRTA was obligated to reimburse Metro for the latter’s Operating Expenses which included the salaries, wages and fringe benefits of certain employees of Metro. (Light Rail Transit Authority vs. Noel B. Pili et. al., G.R. No. 202047, June 08, 2016)

Question 6

Can the NLRC assumed jurisdiction over illegal dismissal cases against LRTA?

Answer 6

No. . LRTA is a government-owned and controlled corporation - any allegation of illegal dismissal against it by its employees should have been brought to the CSC. The Labor Arbiter and the NLRC do not have jurisdiction over LRTA. Petitioners themselves admitted in their complaint that LRTA “is a government agency organized and existing pursuant to an original charter (Executive Order No. 603)” and that they are employees of METRO.[

Question 7

What is Compulsory Arbitration by Labor Arbiters?

Answer 7

Arbitration is the reference of a dispute to an impartial third person, chosen by the parties or appointed by statutory authority to hear and decide the case in controversy. When the consent of one of the parties is enforced by statutory provisions, the proceeding is referred to as compulsory arbitration. In labor cases, compulsory arbitration is the process of settlement of labor disputes by a government agency which has the authority to investigate and make an award which is binding on all the parties.

Question 8

Who is clothed with the authority to conduct compulsory arbitration?

Answer 8

Under the Labor Code, it is the Labor Arbiter who is clothed with the authority to conduct compulsory arbitration on cases involving termination disputes and other cases under Art. 224. A Labor Arbiter is the NLRC’s representative in a Regional Arbitration Branch. The Labor Arbiters, numbering about 200, adjudicate cases in behalf of the NLRC but their decisions are appealable to the NLRC itself sitting as any of its eight divisions.

Question 9

Does the Appellate Proceedings before the NLRC part of arbitration?

Answer 9

No more. When the Labor Arbiter renders his decision, compulsory arbitration is deemed terminated because by then the hearing and determination of the controversy has ended. Any appeal raised by an aggrieved party from the Labor Arbiter’s decision is already beyond the scope of arbitration since in the appeal stage, the National Labor Relations Commission en banc merely reviews the Labor Arbiter’s decision for errors of fact or law and no longer duplicates the proceedings before the Labor Arbiter.

Question 10

What is the nature of the proceedings before the NLRC?

Answer 10

It is non-litigious. Subject to the requirements of due process, the technicalities of law and procedure in regular courts do not apply in NLRC/Labor Arbiter Proceedings. The Arbiter may avail himself of all reasonable means, including ocular inspection, to ascertain the facts speedily; he shall personally conduct the conferences or hearings and take full control of the proceedings.

Question 11

Does the Labor Arbiter have exclusive jurisdiction over the six cases in Article 224?

Answer 11

No. Any or all these cases can, by agreement of the parties, be presented to and decided with finality by a voluntary arbitrator or panel of voluntary arbitrators. A voluntary arbitrator under Art. 273 has “original and exclusive” jurisdiction over disputes concerning CBA implementation or personnel policy enforcement. In addition, under Article 275, the parties may submit to voluntary arbitrator (or panel) “all other disputes including unfair labor practices and bargaining deadlocks.” In other words, a case under Art. 224 may be lodged instead with a voluntary arbitrator despite the seemingly “exclusive” jurisdiction of the labor arbiter. This is because the law prefers, or gives primacy to, voluntary arbitration instead of compulsory arbitration.

Question 12

What is the Labor Arbiter’s jurisdiction in general?

Answer 12

It can hear and decide cases which are employment related. However, there are instances when even if the element of employer-employee relationship exists, the case may not prosper if the employer enjoys immunity from Philippine jurisdiction, although operating within Philippine territory, the employer organization is exempted from the application of Philippine laws.

Question 13

What “workplace” include?

Answer 13

It is understood as the place or locality where the employee is regularly assigned at the time the cause of action arose. It shall include the place where the employee is supposed to report back after a temporary detail, assignment or travel.

Question 14

What is “workplace” for field employees, ambulant and itinerant workers?

Answer 14

In the case of field employees, as well as ambulant or itinerant workers, the workplace is where they are regularly assigned or where they are supposed to regularly receive their salaries or wages or work instructions from, and report the results of their assignments to the employers.

Question 15

What is the Venue of NLRC cases?

Answer 15

All cases which Labor Arbiters have authority to hear may be filed in the Regional Arbitration Branch having jurisdiction over the workplace of the complainant or petitioner.

Question 16

Can the venue be changed or transferred?

Answer 16

Yes. The venue may be changed or transferred to a different Regional Arbitration Branch other than where the complaint was filed by written agreement of the parties or when the Commission or Labor Arbiter before whom the case is pending so orders, upon motion by the proper party in meritorious cases.

Question 17

Where shall cases involving OFWs be filed?

Answer 17

Before the RAB having jurisdiction over the place where the complainant resides or where the principal office of the any of the respondents is situated at the option of the complainant.

Question 18

Suppose the workplace is in Cebu and the employer’s place of business is also in Cebu. But the laborers who have complaints against the employer reside in Manila. Should they file their complaint in Cebu? Or in Manila?

Answer 18

In the case of Sulpicio Lines Inc. vs. NLRC, 254 SCRA 506 (1996), the Supreme Court held that the question of venue essentially pertains to the trial and relates more to the convenience of the parties rather than the substance and merits of the case. It underscored the fact that the permissive rules underlying provisions on venue are intended to assure convenience for the plaintiff and his witnesses and to promote the ends of justice. With more reason does the principle find applicability in cases involving labor and management because of the doctrine well-entrenched in our jurisdiction that the State shall afford full protection to Labor. The worker being the economically disadvantaged party – whether as complainant/petitioner or as respondent, as the case may be – the nearest governmental machinery to settle the dispute must be placed at his immediate disposal.

Question 19

Where is the workplace if the complainant works in a vessel plying the Manila and Cotabato route?

Answer 19

For purposes of venue, workplace shall be understood as the place or locality where the employee is regularly assigned when the cause of action arose. Since the private respondents regular place of assignment is the vessel MV Cotabato Princess which plies the Manila-Estancia-Iloilo-Zamboanga-Cotabato route, we are of the opinion that Labor Arbiter Arthur Amansec was correct in concluding that Manila could be considered part of the complainant’s territorial workplace.

Question 20

What is a Labor Dispute?

Answer 20

Article 219 (previously Article 212) of the Labor Code defines a “labor dispute” as “any controversy or matter concerning terms and conditions of employment or the association or representation of persons in negotiating, fixing, maintaining, changing or arranging the terms and conditions of employment, regardless of whether the disputants stand in the proximate relation of employer and employee.

Question 21

When does the Labor Arbiter has jurisdiction over money claims?

Answer 21

A money claim arising from employer-employee relations, excepting SSS/ECC/Medicare claims, is within the jurisdiction of the Labor Arbiter –

1. if the claim, regardless of the amount, is accompanied with a claim of reinstatement;
2. if the claim, whether or not accompanied with a claim for reinstatement, exceeds P5,000.00 per claimant;

Question 22

Elaborate on the Money Claims cognizable by the Labor Arbiter.

Answer 22

The claim under No. 1 is practically a termination dispute which falls within the labor arbiter’s jurisdiction according to Article 224, except, as already mentioned, if Article 274 or 275 is applicable. Furthermore, the claims under either No. 1 or No. 2, above, are beyond the jurisdiction of a DOLE Regional Director under Article 129 which removes from the regional director’s hands any claim for reinstatement or any money claim exceeding P5,000. Those claims should instead be filed with the NLRC.

But the new Batas Kasambahay should be noted. A Kasambahay’s claim, regardless of amount, falls within the jurisdiction of the DOLE Regional Director, not the NLRC. (Section 37, Batas Kasambahay)

Question 23

May a money claim arising from implementation of the CBA be filed with the Labor Arbiter?

Answer 23

The original and exclusive jurisdiction of the Labor Arbiter under Art. 224 ( c ) for money claims is limited only to those arising from statutes or contracts other than a Collective Bargaining Agreement.

The Voluntary Arbitrator or Panel of Voluntary Arbitrator will have original and exclusive jurisdiction over money claims “arising from the interpretation or implementation of the Collective Bargaining Agreement and those arising from the interpretation or enforcement of company personnel policies under Article 274. (San Jose vs. NLRC and Ocean Terminal Services Inc. G.R. No. 121227, August 17, 1998)

Question 24

What kind of money claims which falls within the Jurisdiction of the Labor Arbiter?

Answer 24

Money claims of workers which do not arise out of or in connection with their employer-employee relationship fall within the jurisdiction of the regular courts of justice. Hence, “money claims of workers” referred to in paragraph 3 of Article 224 embraces money claims which arise out of or in connection with the employer-employee relationship, or some aspect or incident of such relationship.

Question 25

What is “Double Indemnity?”

Answer 25

R.A. 8188 makes the employer liable to pay an amount equivalent to double the unpaid benefits owing to an employee by virtue of a wage order that increases or adjusts the wage rates. The enforcement of this “double indemnity law” falls within the authority of a Labor Arbiter [or a DOLE Regional Director] who is hearing a money claim or an illegal dismissal complaint filed by employee-complainants.

Question 26

What is the test if the claim is cognizable by the regular courts and not with the labor arbiter?

Answer 26

Where the claim to the principal relief sought is to be resolved not by reference to the Labor Code or other labor relations statute or a collective bargaining agreement but by the general civil law, the jurisdiction over the dispute belongs to the regular courts of justice and not the labor arbiter and the National Labor Relations Commission.

Question 27

Can the Labor Arbiters award moral damages of dismissed employee against his employer?

Answer 27

Yes. Money claims of workers which the labor arbiter has original and exclusive jurisdiction are comprehensive enough to include claims of moral damages of a dismissed employee against his employer. The Labor Arbiters and the NLRC have jurisdiction to award all kinds of damages in cases arising from employer-employee relations.

A contrary rule would result in the splitting of actions and the consequent multiplicity of suits.

Question 28

Is the law against splitting of cause of actions extends to labor cases?

Answer 28

Yes. An employee who has been illegally dismissed so as to cause him moral damages has a cause of action for reinstatement, backwages and damages. When he institutes proceedings before the labor arbiter, he should make a claim for all said relieft. He cannot prosecute his claim piecemeal, separately and contemporaneously in a court of justice upon the same cause of action or part thereof.

Question 29

What is the extent of Labor Arbiter’s jurisdiction on strikes and lockouts?

Answer 29

Whether the alleged reason for the strike is “strikeable,” whether the required strike procedure is followed, whether the strikers committed prohibited acts during a strike, are some of the issues a labor arbiter may be called upon to decide.

Question 30

What incidents which are not covered by the jurisdiction of the Labor Arbiters relating to concerted activities?

Answer 30

1) the power to issue injunction. This power is lodged with an NLRC division and not a labor arbiter;
2) National Interest cases which is handled by the DOLE Secretary or the President of the Republic of the Philippines who will assume jurisdiction or refer the case to the NLRC if the labor dispute or impending strike or lockout involves an industry indispensable to national interest;
3) Actions filed by third parties being affected by a strike of people who are not their employees which is under the jurisdiction of the regular courts;
4) When a crime is committed, whether in relation to a strike or not, the prosecution of the crime has to be done not before a labor arbiter but a regular court because in such case the laws to be administered are primarily penal laws of the land.

Question 31

Who has jurisdiction over OFW’s money claims or dismissal?

Answer 31

It is now with the Labor Arbiter.

Sec. 10 of RA 8042 known as Migrant Worker’s Act, transfers from the POEA to the Labor Arbiters, the original and exclusive jurisdiction to hear and decide claims arising out of an employer-employee relationship by virtue of any law or contract involving Filipino workers for overseas employment including claims for actual, moral, exemplary and other forms of damages.

Question 32

Who is a Migrant Worker?

Answer 32

A “Migrant Worker” is a person who is to be engaged, is engaged, or has been engaged in a remunerated activity in a state in which he or she is not a legal resident; to be used interchangeably with overseas Filipino worker.”

Question 33

What is Sec. 10, R.A. 8042?

Answer 33

“Section 10. Money claims - Notwithstanding any provision of law to the contrary, the Labor Arbiters of the National Labor Relations Commission (NLRC) shall have the original and exclusive jurisdiction to hear and decide within ninety (90) calendar days after filing of the complaint, the claims arising out of an employer-employee relationship or by virtue of any law or contract involving Filipino workers for overseas deployment including claims for actual, moral, exemplary and other forms of damages.”

Question 34

What shall the migrant worker be entitled to in cases of Pretermination under RA 8042?

Answer 34

A worker dismissed from overseas employment without just and authorized cause as defined by law or contract is entitled to his salaries to the unexpired portion of his employment contract plus “full reimbursement of his placement fee with interest at twelve percent per annum.”

Question 35

Does jurisdiction of the NLRC over money claims include involving Filipinos who have not yet left the Philippines for Overseas Employment?

Answer 35

Yes. RA 8042 defines a “migrant worker” as a “person who is to be engaged or has been engaged in a remunerated activity in a state of which he or she is not a legal resident.” The phrase “to be engaged” refers to an applicant worker who has been promised or assured of employment overseas and acting on such promise or assurance, sustains damage and/or injury.

Question 36

What is meant by immateriality of the employer’s nationality?

Answer 36

It means that statute and regulations do not limit the coverage to non-Filipino employers. Filipinos working overseas share the same risks and burdens whether their employers be Filipino or foreigner.

Question 37

Who has jurisdiction over wage distortions?

Answer 37

A salary distortion case is resolve either through CBA mechanism or in unorganized establishments through the NCMB. If the NCMB fails to resolve the dispute in 10 days of conciliation conferences, it shall be referred tothe appropriate branch of the NLRC.

Question 38

What is the basic rule when it comes to submission of jurisdiction in labor cases?

Answer 38

A party cannot invoke the jurisdiction of the court to secure affirmative relief against his opponent and after obtaining or failing to obtain such relief, repudiate or question the same jurisdiction.

Question 39

What is “immunity” in international law?

Answer 39

It is understood as an exemption of the state and its organs from judicial jurisdiction of another state.

This is anchored on the principle of the sovereign equality of state under which one state cannot assert jurisdiction over another in violation of the maxim par in parem non habet imperium (an equal has no power over an equal).

Question 40

What is the extent of the coverage of immunity?

Answer 40

It has been restricted to sovereign or governmental activities (jus imperii).

The mantle of state immunity cannot be extended to commercial, private or proprietary acts (jus gestionis).

Question 41

How the United Nations and its specialized agencies are treated?

Answer 41

The Philippines adheres to the doctrine of immunity granted to the United Nations and its specialized agencies. Both treaties have force and effect of law. The United Nations Revolving Fund for Natural Resources Exploration (UNRFNRE) which is a special fund and subsidiary organ of the United Nations, enjoys immunity and is beyond the jurisdiction of the Labor Arbiter.

Our courts can only assume jurisdiction over private respondent if it expressly waives its immunity.

Question 42

What is the nature of the corporate personality of Local Water Districts?

Answer 42

They are quasi-public corporations whose employees belong to the civil service, hence dismissal of those employees shall be governed by the civil service law, rules and regulations. The Civil Service embraces all branches, subdivisions, instrumentalities and agencies of the government including government owned or controlled corporations with original charters.

Question 43

What is the original adjudicatory power of the NLRC?

Answer 43

Each of the NLRC Divisions has original jurisdiction over petitions for injunction or temporary restraining order under Art. 225. It also has original jurisdiction to hear and decide “national interest” cases as certified to it by the Secretary of Labor under Art. 278 (g). The NLRC hereby gains jurisdiction over all questions submitted or necessarily submitted so as to resolve the dispute, even over issues that otherwise fall within the labor arbiter’s exclusive jurisdiction.

Question 44

What is the Appellate Power of the NLRC?

Answer 44

The NLRC has exclusive appellate jurisdiction over all cases decided by labor arbiters and the DOLE Regional Director or hearing officers under Art. 129.

Question 45

When NLRC has no Appellate Jurisdiction?

Answer 45

It has no appellate jurisdiction rendered by:

1) Voluntary Arbitrator
2) Secretary of Labor;
3) Bureau of Labor Relations Director on cases appealed from DOLE Regional Offices.

The decisions of these officers are appealable to the Court of Appeals.

Question 46

What is covered under the Injunctive Power of the NLRC?

Answer 46

It may enjoin any actual or threatened commission of any or all prohibited or unlawful acts or require the performance of a particular act in any labor dispute, which if not restricted or performed therewith, may cause grave or irreparable damage to any party or render ineffectual any decision in favor of such party.

Question 47

Is the issuance of injunction a matter of labor relations policy?

Answer 47

No. It is frowned upon. The no injunction rule is found in Article 266. This policy explains why Article 225 (e) prescribes the particular procedure and requisites that must be carefully observed before an injunctive writ may issue.

Question 48

May the Labor Arbiters issue injunctive writs?

Answer 48

No. Only the NLRC through its divisions may issue writs of preliminary injunctions and temporary restraining orders. The role of the labor arbiters with regard to the issuance of writs of preliminary injunctions is limited to reception of evidence as may be delegated by the NLRC.

Question 49

What are the conditions for issuance ex parte of a TRO?

Answer 49

Temporary Restraining Order (valid for 20 days) may be issued ex parte under the following conditions:

a) The complainant “shall also allege that unless a temporary restraining order shall be issued without notice, a substantial and irreparable injury to complainants property will be unavoidable;
b) There is testimony under oath sufficient, if sustained, to justify the Commission in issuing a temporary injunction upon hearing after notice;
c) The complainant shall first file and undertaken with adequate security in an amount to be fixed by the Commission sufficient to recompense those enjoined for any loss, expense, or damage caused by the improvident or erroneous issuance of such order or injunction including all reasonable costs, together with reasonable attorney’s fees and expense of defense against the order or against the granting of any injunctive relief sought in the same proceeding and subsequently denied by the Commission;
d) The temporary restraining order shall be effective for no longer than twenty (20) days and shall become void at the expiration of said 20 days.

Question 50

What is the purpose of the Cash Bond?

Answer 50

It is an undertaking to answer for the damages and the amount is to be determined by the Commission. The purpose of the bond is to recompense those enjoined for any loss, expense, or damage caused by the improvident or erroneous filing, together with a reasonable attorney’s fee and expense of defense against the order or against the granting of any injunctive relief sought in the same proceeding and subsequently denied by the Commission.

Question 51

When the power of the NLRC to restrain applicable?

Answer 51

The power of the NLRC to enjoin or restrain the commission of any or all prohibited or unlawful acts as provided in Art. 225 of the Labor Code can only be exercised in a labor dispute.

Question 52

Does the Commission receive evidence for the application of writ of injunction?

Answer 52

The reception of evidence “for the application of a writ of injunction may be delegated by the Commission to any of its Labor Arbiters who shall conduct such hearings in such places as he may determine to be accessible to the parties and their witnesses and shall submit thereafter his recommendation to the Commission.”

Question 53

When the TRO takes effect?

Answer 53

The TRO takes effect upon its issuance and not upon receipt of the parties.

Question 54

How the TRO is computed?

Answer 54

In computing the effectivity of the TRO, Saturday, Sunday, and holidays are not excluded. The maximum period of 20 days includes Saturdays, Sundays and Holidays.

Question 55

What is the requisite before the NLRC can issue injunctive writ?

Answer 55

The power of the NLRC to issue an injunctive writ originates from “any labor dispute” upon application by a party thereof, which application if not granted may cause grave or irreparable damage to any party or to render ineffectual any decision in favor of such party. It is an essential requirement that there must be first a labor dispute between the contending parties before the labor arbiter.

Thus, the NLRC cannot issue injunctive writ which is directly filed before it. The petition should have with the Labor Arbiter who has the original and exclusive jurisdiction to hear and decide the case.

Question 56

In the proceedings before the Commission, what are the rules of evidence applicable?

Answer 56

The rules of evidence prevailing in courts of law and equity shall not be controlling and it is the spirit and intention of the Code that the Commission and its members and the Labor Arbiters shall use every and all reasonable means to ascertain the facts in each case speedily and objectively and without regard to technicalities of law and procedure, all in the interest of due process.

Question 57

What is Substantial Evidence?

Answer 57

Substantial Evidence is more than mere scintilla. It means such relevant evidence as reasonable mind might accept as adequate to support a conclusion.

Question 58

Are lawyers allowed in the proceedings before the Commission?

Answer 58

Yes. The parties may be represented by legal counsel but it shall be the duty of the Chairman, any Presiding Commissioner or Commissioner or any Labor Arbiter to exercise complete control of the proceedings in all stages.

Question 59

What is the nature of the proceedings before the Labor Arbiter?

Answer 59

It shall be non-litigious in nature.

Question 60

What are the prohibited pleadings?

Answer 60

a) Motion to dismiss the complaint except on ground of lack of jurisdiction over the subject matter, improper venue, res judicata, prescription and forum shopping;
b) Motion for bill of particulars;
c) Motion for New Trial;
d) Petition for Relief from Judgment;
e) Motion to declare respondent in default;
f) Motion for Reconsideration of any decision or order of the labor dispute;
g) Appeal from the interlocutory order of the labor arbiter such as but not limited to:

    1. Denying a Motion to Dismiss
    2. Denying a Motion to Inhibit
    3. Denying a Motion for Issuance of Writ of   Execution
    4. Denying a motion to quash a writ of execution

h) Appeal from the issuance of certificate of finality of the decision of the Labor Arbiter;
i) Appeal from orders issued by the Labor Arbiter in the course of execution proceedings;
j) such other pleading, motions, and petitions of similar nature intended to circumvent above provisions.

Question 61

What are the purposes of Mandatory Conciliation and Mediation Conference?

Answer 61

1. Amicably settle the case upon fair compromise;
2. determining the real party in interest
3. determining the necessity of amending the complaint and including all causes of action;
4. defining and simplifying the issues in the case;
5. Entering into admissions or stipulations of facts;
6. Threshing out preliminary matters.

The labor arbiter shall personally preside and take full control of the proceedings and may be assisted by the Labor Arbitration Associate in the conduct thereof.

Question 62

What is the effect of non-appearance of the complainant in the Conciliation and Mediation?

Answer 62

The non-appearance of the complainant or petitioner during the two settings for mandatory conciliation and mediation conference scheduled in the summons, despite due notice thereof, shall be a ground for the dismissal of the case without prejudice.

Question 63

What is the effect of the non-appearance of the respondent during Conciliation and Mediation?

Answer 63

In case of non-appearance by the respondent during the first scheduled conference, the second conference as scheduled in the summons shall proceed. If the respondent still fails to appear at the second conference despite duly served with summons, he/she shall be considered to have waived his/her right to file position paper.

Question 64

What is the duration of the Mandatory Conciliation and Mediation Conference?

Answer 64

Except for justifiable grounds, shall be terminated within 30 calendar days from the date of the first conference. No motion for postponement shall be entertained except on meritorious grounds and when filed at least three (3) days before the scheduled hearing.

Question 65

What is the condition of any agreement entered into by the parties during conciliation and mediation conference?

Answer 65

Any agreement entered into by the parties whether in partial or full settlement, the same shall be reduced in writing and signed by the parties and their counsel or the parties’ authorized representative if any.

Question 66

Can the Compromise Agreement still be modified?

Answer 66

It is true that a compromise agreement once approved by the court has the effect of res judicata between the parties and should not be disturbed except for vices of consent and forgery. However, the NLRC may disregard technical rules of procedure in order to give life to the constitutional mandate affording protection to labor and to conform to the need of protecting the working class whose inferiority against the employer has always been earmarked by disadvantage.

Question 67

How counsels bind their clients to compromise agreement?

Answer 67

Section 7, Rule III of the 2011 NLRC Rules of Procedure states: “Counsel or other representatives of parties shall have authority to bind their clients in all matters of procedure, but they cannot, without special power of attorney or express consent, enter into a compromise agreement with the opposing party in full or partial discharge of the client’s claim.”

Question 68

Is denial of Motion to Dismiss appealable?

Answer 68

No. Under NLRC 2011 Rules states: “Before the date set for mandatory conciliation and mediation conference, the respondent may file a motion to dismiss on grounds provided under Section 5 paragraph (a) hereof. Such motion shall be immediately resolved by the Labor Arbiter through a written order. An order denying the motion to dismiss or suspending its resolution until the final determination of the case is not appealable.”

Question 69

Can there be motu propio dismissal of Complaint based on Prescription?

Answer 69

Yes. When the plaintiff’s own allegations in the complaint show clearly that the action has prescribed, the court may motu propio (at its own initiative) dismiss the case on the ground of prescription. Thus, even assuming that the employer’s motion to dismiss was filed out of time, there was nothing to prevent the labor arbiter from dismissing the complaint on the ground of prescription.

Question 70

Can a complaint be dismissed upon the death of the proprietor?

Answer 70

No, in case where the case is one for reinstatement of the dismissed employees from their work. It is not a money claim, not to say it involved purely employer-employee relationship, which falls under the exclusive authority of the labor officials to hear and resolve. While it combined a claim for backwages and the like, the entitlement of individual employees thereto solely depended on their right to reinstatement. This case falls under the jurisdiction of the NLRC and not the civil courts. (Camara Shoes vs. Kapisanan ng mga manggagawa sa Camara Shoes G.R. Nos. 63208-9, May 5, 1989)

Question 71

Can a dismissed case be revived?

Answer 71

Yes. A party may file a motion to revive or re-open a case dismissed without prejudice within 10 calendar days from receipt of notice of the order, otherwise, his only remedy shall be to refile the case.

Question 72

When is a case deemed submitted for decision?

Answer 72

Upon submission by the parties of their position papers or replies, or the lapse of the period to submit the same, the case shall be deemed submitted for decision unless the Labor Arbiter calls for a hearing or clarificatory conference in accordance with Section 8 of this Rule, in which case, notice of hearing or clarificatory conference shall be immediately sent to the parties. Upon termination of the said hearing, or conference the case shall be deemed submitted for decision.

Question 73

What will be the basis of the decision?

Answer 73

In the determination of whether or not quantum of proof was satisfied by a party contending a particular proposition, the procedure by which issues are resolved based only on position papers, affidavits or documentary evidence, if agreed by the parties, may be availed of by the arbiter.

Question 74

When shall the labor arbiter renders a decision?

Answer 74

The labor arbiter shall render his/her decision within 30 calendar days without extension after submission of the case by the parties for decision, even in the absence of stenographic notes. However, cases involving OFWs shall be decided within 90 calendar days after the filing of the complaint.

Question 75

What is the effect if the decision becomes final and executory?

Answer 75

It is ministerial duty of the court to issue a writ of execution to enforce the judgment (Torres vs. NLRC, 330 SCRA 311)

Question 76

What is the exception of the executory nature of the judgment?

Answer 76

When there is a change in the situation of the parties that would make execution inequitable or when certain circumstances which transpire after the judgment has become final, render the execution of judgment unjust.

Question 77

What is the prescriptive period for execution of judgment?

Answer 77

A final and executory judgment may be executed by motion within 5 years from the date of its entry. After the lapse of such and before it is barred by the statute of limitations, a judgment may be enforced by action.

Question 78

Is the transferee of an enterprise liable to the claims of the employees of the transferor entity?

Answer 78

No. Labor contracts being in personam in nature are binding only between the parties. Moreover, there is no law requiring a bona fide purchaser of assets of an on going concern to absorb in its employ the employees of the latter.

Question 79

What are the exceptions to this rule, when the transferee is liable to the claims of the employees?

Answer 79

1. When the parties expressly provide that the purchaser/transferee is to assume liability;
2. When the transaction between the parties is colored and clothed with bad faith. The sale or disposition must be motivated by good faith as an element of exemption from liability;
3. in case of mergers, the principle that labor contracts are not enforceable against the transferee of an enterprise, labor contracts being in personam, applies only when the transferee is entirely new corporation with distinct personality from the integrating firms. Such principle does not apply where the transferee was found merely an alter ego of the different merging firms.

Question 80

Are non-lawyers allowed to apper before the Commission or Labor Arbiters?

Answer 80

Yes. Under the following instances:

1. He represents himself as party to the case;
2. He represents a legitimate labor organization which is a party to the case;
3. He represents a member or members of legitimate labor organizations that is existing within the employer’s establishment who are parties to the case;
4. He is duly-accredited member of any legal aid office recognized by the Department of Justice or Integrated Bar of the Philippines;
5. He is the owner or president of the corporation or establishment which is a party to the case;

Question 81

What is the general rule when changing lawyers?

Answer 81

The counsel who acted as such until a labor case reached its final conclusion should be considered as the union’s counsel in the execution of the decision. There can be no valid substitution of counsel until the prescribed procedure is followed.